One function of HOA boards is to gather feedback from homeowners and translate that input into effective policies. However, navigating the diverse interests and concerns of community members can be challenging. This is where policy resolutions and well-managed meetings become essential.
Policy resolutions formalize board decisions, ensuring clarity and consistency in community standards. Meanwhile, effective meetings provide a platform for open dialogue and collective decision-making. By mastering these elements, HOA boards can foster transparency, enhance resident engagement, and create a thriving community atmosphere.
In this blog, we provide more insight into policy and meeting management, offering practical advice for HOA boards.
Contents
- What Are Policy Resolutions?
- How to Conduct an Effective HOA Meeting
- Documenting Meeting Proceedings
- Practical Guidance for Policy Implementation
What Are Policy Resolutions?
According to the Community Associations Institute (CAI), a resolution is a formalization of a board decision, following a set format and adopted by the board. While there are various types of resolutions, policy resolutions hold particular significance as they directly impact the rights and responsibilities of homeowners.
Policy resolutions can cover a range of issues, including:
- Use of Individual Lots: Resolutions can restrict what homeowners can and cannot do on their properties. For example, the board may pass a policy resolution preventing residents from raising fowl in their backyards.
- Appearance Standards: Architectural and landscaping guidelines may be established to ensure that individual properties adhere to a consistent aesthetic.
- Rule Enforcement Procedures: These resolutions set forth how rules will be enforced, such as the number of warnings homeowners will receive before fines are assessed.
Why Use Policy Resolutions?
The governing documents of an HOA are fairly general. Although the covenants lay out the obligations of the HOA and the homeowner, and the bylaws lay out regulations for administration, specific policies and procedures aren’t typically listed in either. This is not an oversight.
Governing documents are designed so the HOA can create customized policies that meet the needs of that community at any point in time. The covenants usually give the HOA board the right to create rules and regulations, including policy resolutions, and to revisit these rules if they find they no longer fit the community’s needs.
While boards may find it simpler to adopt rules through informal motions during meetings, utilizing the formal resolution process offers several advantages, including:
Systematic Approach
The formal resolution process encourages a methodical review of existing governing documents. This ensures that new policies are consistent with the established framework, reducing the risk of conflict or confusion.
Clarity and Precision
Resolutions require careful wording and a standardized format. This minimizes ambiguity, making it easier for homeowners to understand their rights and responsibilities.
Enhanced Legitimacy
A formally adopted resolution carries more weight than a simple motion. It demonstrates that the board has engaged in thoughtful deliberation, providing a solid foundation for the rules being enacted.
Increased Transparency
Resolutions provide an official, documented record of board decisions, which can be referenced in the future.
Easier Enforcement
Well-crafted policy resolutions are less likely to be perceived as arbitrary. Clear guidelines make enforcement more straightforward and justifiable.
How to Draft Policy Resolutions
CAI recommends resolutions follow a standardized format, including four key sections:
1. Authority
This section clarifies the board’s power to enact the resolution, often citing specific articles from the governing documents. For example: “WHEREAS, Article X of the covenants grants the board of directors the authority to adopt rules and regulations…”
2. Purpose
This expresses the rationale behind the resolution. For instance: “WHEREAS, there is a need to adopt a specific pet policy…”
3. Scope and Intent
This details the application of the rule, including who it affects, its duration, and penalties for non-compliance. Several paragraphs may outline various aspects, each beginning with “WHEREAS…”
4. Specifications
This section states the actual rules being adopted, such as: “NOW, THEREFORE, BE IT RESOLVED THAT the board of directors hereby adopts the following pet policy…”
Additional Factors to Consider
When developing policy resolutions, boards should also consider the following:
Communication
After a resolution is adopted, it should be communicated to all community members (typically through mail) and incorporated into the community’s official book of resolutions. Existing handbooks or welcome packages should also be updated to reflect the new policy.
Conflicting Governing Documents
It’s also important to note that a resolution cannot conflict with the governing documents. For example, if the covenants state that each household may have no more than two domestic animals, the board could not enact a pet policy that allows more than that.
If a board is seeking to adopt a rule that conflicts with governing documents, then those documents must be amended. This is often a difficult, time-consuming process.
State and Federal Regulations
Additionally, under no circumstances can a resolution violate a civil statute or law. For example, a policy resolution cannot be at odds with the Federal Fair Housing Act and, in North Carolina, a policy cannot contradict the Planned Community Act (for communities developed after 1999).
How to Conduct an Effective HOA Meeting
While resolutions can often be adopted by a vote of the board without homeowners’ consent, it’s wise for boards to seek input from the community through open meetings. These gatherings provide a platform for homeowners to voice their concerns, discuss community issues, and participate in decision-making processes.
Nevertheless, HOA meetings aren’t always productive. Without proper management and structure, these gatherings can devolve into disorganized discussions, resulting in frustration and disengagement among members.
To ensure that meetings achieve their intended outcomes, HOA boards should:
Prepare a Clear Agenda
An effective meeting begins with a well-structured agenda. This agenda should outline the topics to be discussed, including specific times allocated for each item. Distributing the agenda in advance allows members to prepare their thoughts and contributions.
Establish Ground Rules
Before diving into the meeting, it’s crucial to announce ground rules. This helps set the tone for respectful discourse. The presiding officer should explain the process of the meeting, including how and when homeowners can provide input.
Manage Speaking Time
If disruptive members are expected, consider implementing strict time limits for comments to ensure everyone has the opportunity to speak. A sign-up sheet can also help streamline the process.
Handle Disruptive Behavior with Care
Disruptive behavior can quickly derail a meeting. Should a member become unruly, the chairperson should calmly explain that such behavior is inappropriate. If disruptions persist, the chairperson may call a brief recess to allow emotions to settle and to speak privately with the disruptive member, explaining that their behavior needs to change for the meeting to continue.
Remove a Member
In extreme cases where a member continues to disrupt the meeting after multiple warnings, removal may be necessary. However, this should be a last resort due to the potential fallout it can cause within the community.
Documenting Meeting Proceedings
Minutes serve as the official record of discussions, decisions, and actions taken during meetings, allowing board members and homeowners to reference past proceedings. Since inaccurate or incomplete minutes can lead to misunderstandings and disputes, this task must be approached with care.
Typically, the responsibility for taking minutes falls to the association’s secretary, whose role is often outlined in the bylaws. The secretary is tasked with keeping records, distributing required notices, and maintaining an accurate account of meetings.
Essentials of Effective Minute-Taking
Effective minute-taking is crucial for accurately documenting HOA meetings and ensuring all discussions are recorded for future reference. Essential details that should be recorded include:
Basic Information
Begin with a description of the meeting, including the type of meeting, the name of the association, the date, time, and location.
Attendance
List all attendees, including board members, guest speakers, and representatives from the HOA management company.
Structured Format
Use an outline based on the meeting agenda to facilitate note-taking. This allows the minute-taker to follow the flow of the meeting.
Action Items
Record all actions taken during the meeting. Capture who made and seconded motions, how the votes were cast, and whether motions were passed unanimously or opposed. If no action was taken on an item, note that discussions occurred but no decisions were made.
After the meeting, the notetaker should type up the minutes as soon as possible. Immediate documentation helps reduce the risk of inaccuracies.
Practical Guidance for Policy Implementation
After holding an HOA meeting and adopting a policy resolution, the next step is policy implementation.
To successfully enforce a new policy, HOA boards should:
Communicate, Communicate, Communicate
First, the HOA board must communicate the new policy to all homeowners. This can be done through various channels, such as mail, email, and the HOA’s website.
Clear communication should outline the purpose of the policy, its implications for homeowners, and any specific actions they need to take. Consider hosting a follow-up meeting to address questions and concerns.
Update Governing Documents
Next, update any governing documents, such as handbooks or welcome packages, to reflect the new policy. All HOA materials should accurately represent the current rules and regulations, making it easier for residents to understand their rights and responsibilities.
Train and Educate
If the policy involves changes in procedures or new compliance requirements, consider offering training sessions for board members and homeowners. This could be particularly important for complex policies, such as those related to architectural guidelines or assessments.
Gather Feedback
After the policy has been in effect for a designated period, solicit feedback from homeowners. This can be done through surveys, informal discussions, or dedicated feedback sessions. Gathering input helps the board assess the policy’s effectiveness and identify any areas for improvement.
Reassess and Revise
Finally, be prepared to reassess and revise the policy as necessary. Community needs may change, and what worked initially might require adjustments over time.
Take the Stress Out of HOA Governance
From drafting new policies to managing important community meetings, running an HOA board isn’t easy. Luckily, our comprehensive HOA management services are designed to help you focus on what truly matters: creating a vibrant community.
As one of the highest-rated providers of HOA management services in North and South Carolina, we provide the HOA tools and solutions needed to implement effective policies, facilitate transparent communication, and promote resident involvement. Whether you need assistance with covenant enforcement or architectural compliance, we are here.
To learn more about our HOA management services, contact us online or give us a call at 888-565-1226.
